Science & Technology
Science and Technology
Science and Technology
Fri, February 27, 2009 Phyhealth Increases Ownership in Phyhealth Underwriters, Inc. from 50% to 92.5%
MIAMI--([ BUSINESS WIRE ])--Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians announced today that it has reached agreement with Atlas Insurance Management, whereby Phyhealth will increase its ownership in Phyhealth Underwriters, Inc. from 50% to 92.5%. The full details will be provided following the conclusion of the transaction.
Phyhealth Underwriters is the attorney-in-fact for Physhield Insurance Exchange, a Risk Retention Group (Physhield), and has a long-term agreement with Physhield to manage its operations. Physhield is a reciprocal insurer licensed by the state of Nevada and currently certified to write medical malpractice insurance coverage for physicians in Nevada, Texas and Florida. Phyhealth Underwriters develops its revenue as a percentage of the medical malpractice premiums written by Physhield.
Upon completion of the transaction, Phyhealth will hold controlling interest in Phyhealth Underwriters which restructures Phyhealth Underwriters from a joint venture with Atlas to a Phyhealth subsidiary. Atlas is expected to continue to be actively involved in the Physhield program and will retain one director on Phyhealth Underwriters' Board of Directors. Phyhealth Underwriters' results will be reported in Phyhealth's consolidated financial statements beginning with the quarter ending March 31, 2009.
Mr. Robert Trinka, Chairman and CEO of Phyhealth, stated, "Increasing our ownership of Phyhealth Underwriters is both strategic and timely. Our goal for Physhield is to bring power and control back to physicians by enabling them to better manage their medical malpractice insurance program and ultimately make decisions in the best interests of their patients and themselves. We see a very bright future for Physhield and Phyhealth Underwriters, and we believe increasing our stake in Phyhealth Underwriters at this time will ultimately benefit our shareholders."
About Physicians Healthcare Management Group, Inc.
Physicians Healthcare Management Group, Inc. (Phyhealth) is a developer of community-based health maintenance organizations (HMOs) that are owned and operated in partnership with the participating physicians. Phyhealth Plans are designed to deliver high-quality affordable healthcare by enabling physicians to assume end-to-end management of healthcare for their patients. The Phyhealth model empowers physicians to provide preventive healthcare and proactively manage their patient's general health by aligning incentives amongst the HMO, physician and the patient. Phyhealth intends to offer additional value-added products and services in cooperation with physicians, including medical malpractice insurance, local care facilities and wellness programs, as well as information technologies such as secure electronic medical records.
Forward-Looking Statements
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Physicians Healthcare Management Group, Inc, and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Additional information is available at: [ http://www.phyhealth.com ].
